Textron
Through the investors’ lenses
Each of these investors has said in public what they look at before buying. Click a name to see how this company measures up — a tick where it passes one of their tests, a cross where it does not.
Warren Buffett 2/3
| Measure | TXT | Checked against | |
|---|---|---|---|
| Owner earnings | $939.00m | positive | ✓ |
| Return on equity | 11.7% | median 11.7% | ✓ |
| Debt to equity | — | median 0.79x | — |
| Operating margin | 7.7% | median 15.0% | ✗ |
Passes 2 of 3. To be clear: Warren Buffett has never said anything about Textron. These are the company’s own figures put through the tests he described. What he looks at, and why →
Terry Smith 0/2
| Measure | TXT | Checked against | |
|---|---|---|---|
| Return on capital employed | — | median 10.1% | — |
| Cash conversion | 1.42x | median 1.78x | ✗ |
| Operating margin | 7.7% | median 15.0% | ✗ |
| Debt to equity | — | median 0.79x | — |
Passes 0 of 2. To be clear: Terry Smith has never said anything about Textron. These are the company’s own figures put through the tests he described. What he looks at, and why →
Charlie Munger 1/2
| Measure | TXT | Checked against | |
|---|---|---|---|
| Return on capital employed | — | median 10.1% | — |
| Return on equity | 11.7% | median 11.7% | ✓ |
| Operating margin | 7.7% | median 15.0% | ✗ |
Passes 1 of 2. To be clear: Charlie Munger has never said anything about Textron. These are the company’s own figures put through the tests he described. What he looks at, and why →
Chuck Akre 1/3
| Measure | TXT | Checked against | |
|---|---|---|---|
| Return on equity | 11.7% | median 11.7% | ✓ |
| Debt to equity | — | median 0.79x | — |
| Cash conversion | 1.42x | median 1.78x | ✗ |
| Return on equity, sustained | 6 of 10 | 8 of 10 above median | ✗ |
Passes 1 of 3. To be clear: Chuck Akre has never said anything about Textron. These are the company’s own figures put through the tests he described. What he looks at, and why →
Philip Fisher 1/3
| Measure | TXT | Checked against | |
|---|---|---|---|
| Operating margin | 7.7% | median 15.0% | ✗ |
| Net margin | 6.2% | median 10.2% | ✗ |
| Return on capital employed | — | median 10.1% | — |
| Operating margin, held or improving | 7.7% | 10-yr median 6.9% | ✓ |
Passes 1 of 3. To be clear: Philip Fisher has never said anything about Textron. These are the company’s own figures put through the tests he described. What he looks at, and why →
Benjamin Graham 1/1
| Measure | TXT | Checked against | |
|---|---|---|---|
| Current ratio | — | 2.00x published | — |
| Long-term debt to working capital | — | 1.00x published | — |
| Positive earnings, ten years running | 10 yrs | 10 published | ✓ |
Passes 1 of 1. To be clear: Benjamin Graham has never said anything about Textron. These are the company’s own figures put through the tests he described. What he looks at, and why →
Peter Lynch 0/1
| Measure | TXT | Checked against | |
|---|---|---|---|
| Debt to equity | — | median 0.79x | — |
| Net margin | 6.2% | median 10.2% | ✗ |
Passes 0 of 1. To be clear: Peter Lynch has never said anything about Textron. These are the company’s own figures put through the tests he described. What he looks at, and why →
| Basis | Payout | Why |
|---|---|---|
| GAAP earnings | 1.6% | whyThe figure most screeners publish. |
| Operating cash flow | 1.4% | whyBefore capital spending. |
| Free cash flow | 1.9% | whyAfter maintaining the business. |
All bases agree, within a point.
Coverage rating 72 / 100 — Adequate. ? Peer standing 49/50Direction 18/30Stability 4/20
Free cash flow payout, last 6 years
| Fiscal year | Payout |
|---|---|
| 2026-01-03 | 1.9% |
| 2024-12-28 | 1.8% |
| 2023-12-30 | 1.9% |
| 2022-12-31 | 1.5% |
| 2022-01-01 | 1.5% |
| 2021-01-02 | 4.0% |
99% of the 74 industrials here pay out more — comfortable for the sector.
The arithmetic
- GAAP earnings — dividends declared per share $0.0800 ÷ diluted EPS $5.11
- Operating cash flow — dividends paid $18.0m ÷ operating cash flow $1,312m
- Free cash flow — dividends paid $18.0m ÷ (operating cash flow $1,312m − capex $383m)
Where the figures came from
- 10-K filed 2026-02-11 · accession 0000217346-26-000006
All public at sec.gov — you should not have to take our word for it.
Computed straight from SEC XBRL. A number that looks wrong to you is more useful to us than agreement — tell us.
What the free cash flow payout ratio measures, and where every company here sits on it.
Also on: rated adequate · when it files.
When this changes
Every figure above is recomputed whenever Textron files. The monthly letter carries what filed, what moved, and one finding computed across every company here.